Meaning of Supply Chain Management : an insight into process flow and linkage

Meaning of Supply Chain Management : an insight into process flow and linkage

Presenter – Prasanth S.

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Know your Instructor – Prasanth S.

Process leader at one of the largest manufacturing organization of the world.

A mechanical engineer from Birla Institute of Technology, Mesra, Ranchi, India.

An MBA grad from XLRI specializing in operations and finance

Process designer – Supply Chain Management

Worked on most of the modern day process improvement methodologies like CCPM, LEAN, TOC, TQM,

SCM, Six sigma, Business process re-engineering, SMED, Statistical tools and POOGi tools.

Conducted & Implemented SCM process designs across various domains of manufacturing and services.

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Agenda

What is Supply Chain Management?

A brief history in time

Why should one learn about supply chain management?

Structure of Supply Chain Management system in brief

Top Organizations benefitting from supply chain management

Key features of the course and Edureka education platform

Questions and doubts

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What is Supply Chain Management?

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Supply Chain -Definition

All stages involved, directly or indirectly, in fulfilling a customer request

Includes manufacturers, suppliers, transporters, warehouses, retailers, and customers

Within each company, the supply chain includes all functions involved in fulfilling a customer request

(product development, marketing, operations, distribution, finance, customer service)

It involves dynamic and constant flow of information, products and funds between different stages and

stakeholders.

Customer is an most important and an integral part of the supply chain

A supply chain is typically consists of various sources and resources at various stages and hence we

may be right in calling it “supply network” or “supply web” more accurately.

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Views of a Supply Chain

Supplier stage market

product

Buyer stage places order

Supply stage receives orders

Supply stage supplies orders

Buyer stage receives supply

Buyer returns

reverse flows to supplier

Sub processes in each Supply Chain process cycle

Interdependencies in a Supply Chain Management

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A Brief History In Time

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Evolution of supply chain management

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Why Supply Chain Management?

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Why Supply Chain management ?

To start with let us take an example of a typical industry which runs on a traditional /general

approach .

We will observe that it will primarily measure and focus on the following elements :

Freight Transportation

Inventory Expense

Administrative Expense

Logistics Related Activity

What do you think is the problem here ??

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Why Supply Chain Management ? Another Scenario

Let me give you another scenario . Below is the expense split

in a typical manufacturing industry.

Profit 4%

Logistics Cost 21%

Marketing Cost 27%

Manufacturing Cost 48%

Do you see a problem here ? What is it ? And why ?

1-11

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Why Supply Chain Management ?

Now lets see how things change when an industry applies the principles of Supply Chain Management in its

true sense .

Few examples.

1) It has been observed that a typical steel industry saves more than Rs 50 Crores ( USD 9.6 million

)by using effective logistics and supply chain strategies.

2) Dell saved billions just by changing its supply chain operations while Compaq estimated that it lost $.5

billion to $1 billion in sales in 1995 just because its laptops were not available when and where needed

3) Walmart a well known grocery brand thrives on the virtues of supply chain management only. It

reduced its operating cost drastically by practical and effective application of SCM.

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Structure Of A Supply Chain Management System

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Structural buildup of a Supply Chain Process

SCM

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Who Is Using And Benefitting From Supply Chain Management

And How?

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How does Supply Chain help ?

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Beneficiaries

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Popular Users

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Popular Users

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Course Features And Methodology-Highlights

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LIVE Online Class

Class Recording in LMS

24/7 Post Class Support

Module Wise Quiz

Project Work

Verifiable Certificate

Course Features

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Questions

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